Optimal Size Of A Firm

Part I of Essay
The optimum size of a firm is a very subjective idea. The ways in which size can help or hinder a firm vary from which angle you a looking at the situation from. Size can have its benefits and its drawbacks, and each firm will have its own benefits and drawbacks that come f ....

Part II of Essay
.... setting up new shops, or taking over another business. The size of a business does however depend a great deal on the market which it is in. For example a business which makes specialist goods, or caters to only a very small number of people, will not be able to grow beyond the capacity of that market. This means that the optimum size for a business in a market with little growth and only a small number of prospective customers would be large enough to serve as many customers as it had market share for, but small enough to ensure that ....